BOI signs 12 Agreements starting the year 2002
has signed 12 agreements during the month of January 2002, amounting
to an estimated total investment of Rs. 1,055mn of which Rs. 780
Mn. consists of foreign investment and the projected employment
is around 1900.
apparel sector growth and dominance still prevail with an agreement
signed by Sirio (Pvt) Ltd. with an investment of Rs.521Mn.
and employing 1200 people. This BOI venture will establish a project
to manufacture non-quota garments for the export market. Dott,
Sandro Veronesi, the president of Calzedonia Luxembourg opened
3 years ago its first factory, Omega line Ltd a state-of-the-art
factory at Sandalankawa. Dott Veronesi decided to open another
factory to expand their presence in Sri Lanka. The parent company
of Sirio Ltd will sell their products through a network over 1250
shops in Europe. They also have their own labels namely "Intimissimi"
for underwear and "Calzedonia" for swimwear.
Colombo Copper (Pvt) Ltd. has signed
an agreement to set up a project to manufacture copper wire rods
in coil forms and stripes for the export market. This project falls
under the light engineering industry category and the main collaborators
of this project are from the USA and India. The total investment
of this project is estimated at Rs. 126 mn with an employment capacity
Allied Metals (Pvt) Ltd. will establish
a project to manufacturer alluminum alloy ingots and automobile
components for the export market. The investment of this project
to be located at Horana Export Procession Zone is Rs. 126 mn while
its employment potential is at 30. The main collaborators of this
project are also from the USA and India.
Lanka Timber plantations and industries
Ltd, has signed an agreement to set up a project to manufacture
wooden furniture for the export market investing Rs. 110 mn and
employing 185 local personal. This new project is a joint venture
between Woodman Export (Pvt) Ltd, Tri Star (Pvt) Ltd and the
State Timber Corporation. The BOI concessions have been granted
to this new project, which is restructured by collaboration with
an existing BOI company.
Mogami Lanka (Pvt) Ltd is a Japanese
investment will establish a project to manufacture and assemble
electrical goods and allied product for the export and domestic
market. This project will be established at Bandaragama investing
Rs. 39 mn. and creating 20 jobs.
Vatters Garden (Pvt) Ltd has signed
an agreement to set up a 24-roomed tourist hotel at Matara. Total
investment of this German project is estimated at Rs. 22 mn. with
an employment capacity of 41.
Agriforce (Pvt) Ltd, will establish
a project to cultivate perennial crops such as mango, cashew,
rambutan, avocado, cocoa and pepper in a 125 hectares land in
Kurunegala district. The estimated local investment of this project
around Rs. 30.4 mn and employment generation will be around 82.
Copier Company (Pvt) Ltd, has signed
an agreement to set up a company for refurbishing imported used
photocopiers, laminating machines, paper shredders and accessories
for re-export. The main collaborators of this project are from
the Australia and India. This project will generate 102 new employment
opportunities while investing a total of Rs. 20 mn.
IT sector, two companies Mackwoods IT (Pvt) Ltd and Spectrum
Training Centre (Pvt) Ltd have signed agreements with investment
totaling Rs. 16.6 mn. and will provide 67 job opportunities. Mackwoods
IT (Pvt) Ltd will establish a project to develop software
for the export. Spectrum Training Centre will set up an information
technology-training institute to provide an education and do research
on Bluetooth Technology and Bio-Informatics in computer science,
computer programming and programming languages.
Omega Tapes (Pvt) Ltd has signed to
set up a project to manufacture adhesive and other tapes for direct
and indirect exporters with an investment of Rs. 34.5 mn. generating
Jinadasa Industrial Appliance (Pvt) Ltd
has signed an agreement to set up to manufacture and assemble
industrial and domestic appliance and components such as electric
motors, motor parts, water pumps and accessories for the export
market investing Rs.12.5 mn and employing 57 local personnel.
web site http://www.boisrilanka.org/
will carry details of approvals given in the last nine months
as well as a comprehensive database with search capabilities for
details on BOI companies under commercial operation.
|India, Singapore, Sri Lanka tripartite
Lankan Government is taking steps to initiate a tripartite trade
and economic pact among Sri Lanka, India and Singapore shortly,
Prime Minister Ranil Wickremesinghe told a group of investors and
business persons in Singapore yesterday.
Minister Wickremesinghe was addressing a seminar organised by
the Singapore Trade Chamber in collaboration with the Board of
Investment at the Marin Mandarin Hotel.
Minister, who is on an official visit to this island State, disclosed
that this matter has been brought to the notice of Singaporean
leaders. He said Sri Lanka must develop close relations with India
and Singapore to spur development and strengthen the economy.
stressed that establishing peace in Sri Lanka was vital to develop
the country economically.
"Singapore has achieved a very high level
of development with only three million people. With nearly 19
million people, it should not be impossible for Lanka to achieve
rapid development," he observed.
take appropriate measures to create a peaceful environment, that
will help achieve speedy development and generate a large number
of employment opportunities. Our doors are always open for foreign
investors." He reiterated that a political solution was essential
to solve the current crisis.
day-to-day needs of the people around the country must be identified.
This is why we lifted the ban recently and started sending goods
to the people in Northern areas."
Minister Wickremesinghe said that the Government has decided to
observe a permanent ceasefire, which will also help to start peace
has completely crippled the Lankan economy, resulting in a negative
growth rate. The government aimed to increase this up to four
was also attended by participants from neighbouring countries
who too forwarded number of questions to the Prime Minister.
asked the Prime Minister about the novel programs initiated by
the Government on par with the Government's 100 day -development
program and how this program affects foreign investors.
replied that the government has implemented many investor-friendly
projects in line with the 100 days program. The BoI has identified
and taken steps to solve many problems related to foreign investment,
so that investors could begin operations in Sri Lanka without
facing any difficulties.
Rehabilitation, Resettlement and Refugees
Minister Dr. Jayalath Jayawardana, UNP Chairman Malik Samarawickrama,
Sri Lankan envoy in Singapore Chitrangani Wagiswara and BOI Chairman
Arjun Mahendran were also present.
off to Singapore
Minister Ranil Wickremesinghe is scheduled to leave for Singapore
today for an official visit.
Minister of Economic Reforms and Science
and Technology Milinda Moragoda, Minister of Rehabilitation, Reconstruction
and Refugees Dr. Jayalath Jayawardana, Minister of Enterprise
development, Industrial policy and Investment promotion Prof G.L.
Peiris and Chairman of the BOI, Arjun Mahendra will also participate
in the tour.
Minister is expected to hold talks with Singapore Prime Minister
Goh Chock Tong and Senior Minister of the Prime Minister's Office
Lee Kuan Yew.
Minister will also meet the officials of the Singapore Economic
Bureau to discuss the means for investment and tourist promotion
between the two countries.
Lankan software Companies at CeBIT 2002
Lankan software companies will present software skills for the
first time at CeBIT 2002 to be held in Hannover, Germany from
March 13 to 20.
CeBIT is the world's largest and most significant tradeshow for
information and telecommunications technology.
known to be an effective buyer -seller meeting place featuring
an extensive display of ICT products and services.
Lanka pavilion will be represented by leading IT/ICT companies
in the country. They are : WaveNET, Lanka On-Line, ExcelSoft,
LogicalTech Corporation, Softtech, eCommerce Technologies, Hsenid
Software International, Ubizport, Evosoft Interactive and Prudential
Exporters Association and the Sri Lanka Tourist Board have designed
the theme " From the land of the eighth wonder we bring you software
par excellence" for the pavilion.
Lanka Pavilion has been organized by the Sri Lanka Export Development
Board (EDB) in collaboration with the Sri Lanka Embassy in Germany
(Ministry of Foreign Affairs) and the Software Exporters Associations
will present 10,000 brochures to the international CeBIT audience
at this exhibition, which is expected to attract over 800,000
visitors. The organizers plan to target European tourists and
businessmen making the event an attractive Sri Lankan experience
in addition to the displaying of IT/ICT products.
Daily News 13/02/02
|Major boost for tea exports
tea exports will shortly be given a major boost following three
landmark decisions - trading teas in US Dollars, the imminent
establishment of a Futures market and the establishment of a new
30 acre Duty Free Shopping Complex on the Colombo-Katunayake Road,
aimed a making Sri Lanka the premier tea exporter in the world.
three developments are mandatory for the Sri Lanka tea industry
to turn around and gain a competitive edge in the international
market. The industry, despite being a major foreign exchange earner
has not progressed substantially in the last decade to the levels
it ought to have, Commerce and Consumer Affairs Minister Ravi
Karunanayake told the Daily News last night.
Minister Ranil Wickremesinghe has given the nod for all three
projects as he is keen to see that the tea industry is fully developed.
The Government will finalise all arrangements for these three
projects within the next few days, Minister Karunanayake said.
would mean that tea exports would reach stability when negotiated
in Dollars unlike the present situation where it is traded in
Sri Lanka Rupees. The values are not fully realised when the Sri
Lanka Rupee is devaluated, Minister Karunanayake explained.
of the exporters are fully supportive of this proposal to export
teas using Dollars barring a few who thrive on foreign exchange
fluctuations, he noted.
on the drawing boards is the establishment of a Futures Market
where buyers would have the facility of making forward bookings
and trading teas in the manner in which financial markets operate
overseas, he said. This would enable Sri Lanka to take the lead
over its competitors such as India, Kenya and China.
project is the establishment of a 30 acre Duty Free Shopping Complex
on the Colombo- Katunayake Road which will not only have teas
but also other consumer goods such as electronic appliances.
will also be made to promote intra- regional travel within the
SAARC region and especially with special emphasis on Indian and
Pakistani tourists, who will be permitted to purchase goods in
Indian/Pakistani Rupees, he stressed.
Minister is very keen that relations with India are fostered and
this project would also strengthen ties between the two countries,
MW from private sector
and Energy Ministry in a bid to solve the power crisis yesterday
decided call for private sector participation to add another 100
MW to the national grid, a spokesman for the Power and Energy Ministry
told the Daily News yesterday.
the Ministry will be obtaining 100 MW from the private sector
under its mid-term proposals to increase the Ceylon Electricity
Board's power generating capacity.
MW obtained from the private sector after calling tenders will
be added to the national grid within two weeks, the spokesman
added. The CEB in a bid to bridge the 200 MW deficit in power
supply and demand called tenders last month to purchase emergency
power from the private sector.
from this the Ministry will also seek private sector participation
to establish wind power stations in areas identified by the CEB.
The Ministry will coordinate with funding agencies and institutions
interested in establishing these wind power projects, the spokesman
is now facing a difficult situation due to the drastic reduction
in the water levels of reservoirs. Several thermal power plants
are also not functioning due to repairs.
Proposals have been made to further increase
the power cuts under these circumstances, CEB sources added.
|Tax-free land for expats
has decided to remove the 100 percent tax on the acquisition of
land by foreigners, officials said.
is intended to make the island more attractive to foreign investors
who had hitherto seen the tax as a stumbling block in making investments
percent tax on land sales to foreigners, whether individuals or
corporate bodies, had served as a deterrent and discouraged foreigners
from acquiring land in the island.
under the Stamp Act and had been in existence for over 20 years.
The tax meant there had been very few outright sales of land to
foreigners, officials said. "This will help attract foreign direct
investment," said Radhika Jayasundera, assistant vice president
of research at DFCC Stockbrokers. "Foreigners will be able to
set up factories and offices with easier access to land."
of Investment officials said foreign investors were concerned
about having to pay such a prohibitive tax in acquiring land for
Sunday Times 10/02/02
|TEXLAN (LANKA) EXPANDS
investor Viscotex S. R. I. of Italy with local counterparts have
gone into an aggressive expansion of their Sri Lankan operation
to manufacture garments & socks for the EU market investing
Rs.144 mn. in the new expansion.
ceremony will be held on 08 th February 2002 at Japalawattha Industrial
Estate Minuwangoda. Mr. Arjunna Mahendran Chairman/Director General
of the BOI will be the chief guest at this occasion.
(Lanka ) Ltd was incorporated in 1980 for the manufacture of Hosiery
viz. Tights (for ladies & children ) and Socks (for men, ladies
and children) for the European market.
the high demand for the company's products in the European market,
the company has decided to set up their second factory to cater
to this demand using state-of-the-art computerized Knitting Machines.
This second factory was built on a land extent of 1.5 acres in
Minuwangoda Industrial Estate, with a total investment of US$
5 million. This has resulted in new employment opportunities for
initially 200 workers, which will be increased to 300 by the end
of this year. The total number of employees of the two factories
currently stands at 530.
total production is exported to Europe and marketed through a
distribution network in Germany, which is also owned by the same
investors. The main shareholders of the company are from Italy.
also have two more investments in Sri Lanka namely Filotex Lanka
(Pvt.) Ltd, the only Acrylic yarn spinning factory in Sri Lanka,
situated in the EPZ Katunayaka and the Tamarind Tree Hotel which
is a unique concept tourist hotel situated at Andiambalama, Minuwangoda.
BOI signs 21 New Agreements generating 2000 Jobs
|Total estimated investment
Rs. 5.83 billion
Projected employment - 2,162
of Investment has released details for the period of November /
December 2001 Investment approvals. The BOI has signed a total of
21 agreements in the months of November to December totaling an
Investment of Rs. 5853 Mn., of which Rs. 2315 Mn. consists of foreign
investment. The projected direct employment is around 2162.
point of the investment agreements has been the first investment
by Chun Cheng Lanka (Pvt) Ltd investing Rs. 1284 Mn and
employing 300 people. The BOI has signed an agreement under the
special technology category to set up a fisheries project, which
will utilize technology not previously used in Sri Lanka. This
Singaporean project would upgrade Sri Lanka's regional competitiveness
in the sector.
Recogen (Pvt) Ltd had signed an agreement
to set up a charcoal manufacturing factory and an 8 MW power generation
plant at Badalgama, with an investment of Rs. 940 Mn The employment
generating capacity is estimated at 90. This project the 100%
owned subsidiary of Haycarb Ltd will produce combusting gases
(rich in Carbon Monoxide, Methane & Hydrogen) released during
pyrolisis of coconut shells in a boiler that will in turn run
a steam turbine. The patent from the total 8 MW of electricity
generated, 7 MW will be supplied to the national grid (under the
standardized private power purchase agreement), while the balance
1 MW will be used for internal consumption.
Further, Zyrex Power Company Erathna Ltd
has signed an agreement to set up a Mini Hydro Power generation
plant investing Rs. 506 Mn, and creating 35 new job opportunities.
Royal Porcelain (Pvt) Ltd has signed
an agreement to set up a project to manufacture ceramic floor
tiles by acquiring the assets of Interbach Porcelain (Pvt) Ltd.,
which is a BOI approved company that ceased commercial activity.
Royal Porcelain made an additional investment of Rs. 722 Mn to
obtain the BOI status.
Kalutota Residence (Pvt) Ltd has signed
an agreement with an estimated investment of Rs. 711 Mn to set
up a project to construct a housing complex in two locations in
Colombo 3 and Colombo 5.
Packaging (Pvt) Ltd, will set up a project to manufacture
corrugated cartons for the local market. The investment in this
project to be located at Wedamulla, Kelaniya is Rs. 610 Mn while
its employment potential is estimated at 188.
International Trading and Packaging Systems
(Pvt) Ltd., will establish a project to manufacture Corrugated
Cartons, Poly bags, Hangers and Acetate boxes for Marks &
Spencer at Seeduwa. The main collaborator of this project is from
Kent, UK. Total investment of this project is estimated at Rs.
63 Mn with an employment capacity of 155.
sq. ft. warehouse complex will be set up at Muthurajawela by John
Keels Warehousing (Pvt) Ltd. The investment in this project
is around Rs. 250 Mn and employment generation will be around
rubber sector Global Rubber (Pvt) Ltd., has signed an agreement
to manufacture solid rubber tyres for the export market investing
Rs. 119.5 Mn and employing 121 local personnel.
Kailash Metachem (Pvt) Ltd., has obtained
approval to set up a project to manufacture lead Oxide, Zinc Oxide,
PVC Stabilizers etc., for the export market investing Rs. 179
Alchemy Boulder (Pvt) Ltd, will establish
a project to process Silica Quartz for the overseas market. The
project will be located at Pallekele Industrial Park and mining
operation would be carried out at Digana, Kandy. This project
will generate 196 new employment opportunities while investing
a total of Rs. 42 Mn.
Haven (Pvt) Ltd., is a Sri Lankan/UK joint venture to set
up a 25 roomed hotel at Pinwatta, Panadura investing Rs. 39 Mn.
Daiko Sri Lanka (Pvt) Ltd a subsidiary of Daiko Co. Ltd
Japan has singed an agreement to set up a project to manufacture
machinery parts and accessories for sewing machines and other
similar machines for export. The total investment of this project
is Rs. 39 Mn.
garment sector, two companies Devouge (Pvt) Ltd, and Challenge
Apparels (Pvt) Ltd have signed agreements with investments
totalling Rs. 52 Mn. and will provide 332 job opportunities. Devouge
will establish a project to manufacture garments for, exports,
which will be located at Polgahawela Export Processing Zone. Challenge
Apparels (Pvt) Ltd located at Narammala will set up a project
to manufacture non-quota garments.
under review has witnessed the entry of three enterprises viz.
Data Infoworks Lanka (Pvt) Ltd, DCS Center for Information
Technology (Pvt) Ltd), and Netmedia International (Pvt)
Ltd to the IT sector. Netmedia International (pvt) Ltd,
has signed an agreement to develop software for the export market.
The main sponsor of this project is Natanya International Ltd
from Bahamas while the local collaborator is Acme International.
The estimated investment of this project is Rs. 230 Mn and employment
generation is 54. Data Infoworks Lanka (Pvt) Ltd will set
up a project to develop software for the domestic and export markets
investing Rs. 26 Mn. DCS Center for Information Technology
(Pvt) Ltd., will set up an IT Training Institute under the
50 IT training center programme investing Rs. 3.5 Mn andl creating
35 job opportunities. This project has been selected by the BII
to operate under the 50 IT training center programme to promote
computer awareness programmes in Urban and Semi Urban areas.
Gem & Jewellery sector two companies, namely Galvo Niru
(Pvt) Ltd, and Herbert Stephan Lanka (Pvt) Ltd with
investment, of Rs. 21 Mn. and Rs. 12 Mn respectively have signed
agreements to set up projects to manufacture Jewellery and cutting
& polishing of gems for the export market. Employment is projected
at over 350.
Regional Holdings (Pvt) Ltd will set up regional operating
headquarters to provide business support services in collaboration
with Shore-to-Shore Inc. of USA. The project undertakes service
activities for their associate investments in India, Bangladesh
& Sri Lanka. The total investment of this project is Rs. 5
Typically 80-85% of the approvals granted
move on to formal agreements signed with the BOI. Approximately
60% of agreements finally move on to projects that materialize
and commence operation.
web site www.boisrilanka.org will carry details of approvals given
in the last eight months as well as a comprehensive database with
search capabilities for details on BOI companies under commercial
|Avoidance of double taxation
between Sri Lanka and Kuwait for the avoidance of double taxation
and prevention of fiscal evasion with respect to taxes on income
was signed in Colombo yesterday.
signed by the Commissioner General of Inland Revenue, B. T. Perera,
for the Government of Sri Lanka and Kuwaiti Ambassador in Sri
Lanka, Monsa Sulaiman Al-Mousa Al-Saif on behalf of Kuwait.
will enter in to force in due course upon the completion of other
procedures required by the law, Perera said. He said that this
is the thirtieth agreement of this nature and many countries said
the USA, Egypt, Iran, Russia, Philippines and Bulgaria have signed
similar agreements before.
the agreement in place it is expected to encourage foreign investors
to the country, he added. The agreement, which includes provisions
for taxation at reduced rates of interest, dividends and royalties
in order to promote capital inflows, will also provide for a complete
"tax sparing" credit, Perera said.
regard to airline profits, complete exemption has been given in
the country of source, but shipping profits are charged to tax
in the source country, subject to a reduction of the tax so charged
by 50%, he said.
provides for the exchange of information between Sri Lanka and
Kuwait to facilitate the enforcement of the provisions of the
agreement and also to assist in the prevention of fiscal evasion
with respect to income tax, he added.
|South Asian market targeted: Rs. 100 million
cosmetic plant to produce Paragon products
Cosmetics Ltd of Australia and Thenuwara Trading Pvt. Ltd are planning
to build a cosmetic plant in Sri Lanka to manufacture Paragon products
aiming at the South Asian market.
Thenuwara Trading Pvt. Ltd, Managing Director, Carmen Thenuwara,
said that discussion in this regard had already been done and the
founder of Paragon Cosmetics Ltd, of Australia, Geoff Lang will
be in Sri Lanka to iron out other details soon. "This will be a
BOI venture and we are hoping to invest around Rs. 100 million in
this plant," he said.
Mr. Thenuwara said that the prime objective behind this move is
to cut down on freight cost in importing cosmetics and provide genuine
products to South Asian customers at a lesser price.
He said that Paragon products were in the Sri Lankan market in the
late 1990's, but had been pulled out. "Now, Thenuwara Trading Pvt.
Ltd, under Paragon Cosmetics Ltd., (Sri Lanka) has been appointed
the sole distributor for Sri Lanka and the Maldives."
He said that last December the company had a soft launch and the
response so far has been good. "We target the upper middle class
and Beauty saloons and hope to market our products through the Internet,
direct marketing and via super markets." He said that for the first
time they will be launching "Slim Line cream " which will help burn
extra fat. Besides, we will market 56 products all of which have
been ratified by the Sri Lanka Health Ministry," he said.
Thenuwara Trading Pvt. Ltd., which sets up business in the Aqua
Culture only last year hopes to launch their product range in the
Maldives next month.
"Paragon Cosmetics Ltd., was launched in Australia in 1976 and over
the years has become a market leader because of its high quality
product. Today, Paragon is being marketed through leading super
markets and departmental stores in Australia, New Zealand, Hong
Kong, Singapore and Malaysia. Paragon offers extensive hair skin
products making it the ideal solutions for people of all walks of
life," said Marketing Manager, Paragon Cosmetics Ltd., (Sri Lanka)
|90% stake in Lanka
Marine Services Ltd to be privatised
Enterprises Reform Commission (PERC) has invited expressions of
interest to privatise 90% stake in Lanka Marine Services Limited
LMSL has the monopoly in bunkering operated within the harbour
providing bunkers to ships calling in at the Colombo Port. Nearly
14,500 tonnes of bunker fuel is supplied per month by LMSL of
which 12% is taken outside Port limits. The fuel oil requirement
for bunkers that is imported by LMSL is stored in bonded storage
tanks from which they are supplied directly to private operators.
LMSL operates through bunker brokers who supply the product to
private barge operators. There are around 30 bunker brokers in
operation at present and five barge operators in addition to LMSL.
LMSL has a storage facility at Bloemendhal Road, Colombo 15, which
has a total storage capacity of approx. 31,000 MT of which 29,000
MT is useable capacity.
has access to three pipelines that carry fuel oil (IFO), gas oil
(MGO) and marine diesel oil (MDO) from the Bloemendhal Terminal
to the South Jetty in the Colombo Port from which the two bunker
barges owned by LMSL carry out deliveries. The company also acts
as the handling agent of CPC for the supply of marine lubricants
to vessels and other industries. These lubricants are sent by
the foreign principles (FAMM, Shell, BP, Mobil, Caltex, ELF and
Castrol) and are stored as bonded cargo at the Bloemendhal terminal.
Daily Mirror 4/02/02
|Touchwood IPO opens on Feb. 6
| The first
Initial Public Offering (IPO) to appear in the Colombo Stock Exchange
since 2000 will be launched by Touchwood Investments Ltd. on February
will also be the first IPO to take place since the new listing
rules were introduced by the Stock Exchange (CSE).
company, approved by the Board of Investment to farm 2000 acres
of Mahogany, will offer 800,000 ordinary shares at a par value
of Rs. 10. Thereafter, 2.23 million ordinary shares of Touchwood
are expected to be listed in the CSE.
"The issue will close on February 25. However, if it is oversubscribed
before this date, it will close on the date on which it was oversubscribed,"
Saffina Fairoos, Manager - Capital Market of Merchant Bank of
Sri Lanka, which is the manager to the issue, said.
The company will be listed on the Second Board of the CSE. The
public share issue will account for 36 per cent of the company
and the proceeds will be utilised to plant more Mahogany trees,
Chairman, Touchwood Investments, Roscoe A.
Maloney said that the novel project had been under research for
the last five years with over 300 woodlots (60 acres) already
With an investment of Rs. 10,000, a customer can purchase a tree
and after 17 1/2 years, when the tree has reached maturity, it
can be sold back to the company for Rs. 250,000. Touchwood supplies
the land, plants the trees, manages and safeguards the plots till
is a sound investment policy as well as being a step towards stopping
the destruction of rain forests. We decided on Mahogany for this
project as they are ideal for the Sri Lankan climate, suitable
to be grown in different geographical locations, have relatively
short-term harvest cycles of 17 1/2 years, are resistant to even
hurricanes and fires and have high value and demand even in other
countries," he said.
investor's tree is destroyed due to some reason, however remote
this possibility maybe, the company has a buffer stock from which
the damaged tree will be replaced, he added.
Among Touchwood Investments' future plans are the development
of a Mahogany Tree Preference Share, putting up a saw mill and
factory, export of Mahogany timber and products, establishment
of carbon credit trading and development of Mahogany woodlots
outside Sri Lanka.
Sunday Observer 3/02/02
|Nestling sites to protect turtles
Department will shortly establish special turtle nestling sites,
in coastal areas to ensure protection of this globally endangered
species and encourage breeding habitats of five of the seven species
of turtles that visit Sri Lanka's shore.
This follows a pilot project within a 3 km protected beach area
in Bundala where several species of turtles have already been
provided with an environment conducive for breeding, Wildlife
Director Dayananda Kariyawasam told the `Daily News' yesterday.
According to the Director, although there are local and international
conventions prohibiting hunting and egg collection, all seven
of the world's turtle species are today threatened with extinction.
The mortality rate of hatchlings and eggs is extremely high given
the army of predators they face. Besides human interference- which
is seen as the major cause for this detrimental trend- turtle
hatchlings, face a serious threat from wild pig, ghost crabs,
birds and even dogs.
The department will deploy staff to monitor and regulate the declared
'nestling sites' to increase their chances of survival. The project,
is also seen as much more than conservation with opportunities
to develop eco-tourism in the country since research has proven
that turtles have inherent navigation capabilities which enable
them to return to the hatching sites instinctively.
" Sri Lanka has the distinction of being the 'adoptive home' for
five of the world's seven turtle species. However, we have yet
to develop this opportunity. Other destinations which have fewer
species visiting their shores market themselves as destinations
harbouring major turtle nestling sites in their ecotourism promotion
propaganda," the Director said.
Daily News 2/02/02
|Holcim (Lanka) to invest $100 million
to reconstruct KKS cement factory
(Lanka) Limited (HLL) will invest US$ 100 million to reconstruct
the Kankesanturai cement factory when normalcy returns to the
Jaffna peninsula, company's chairman, Manilal Fernando said.
"The company is closely following the progress of the peace process
with interest," he told the 'Daily News' following the media conference
to launch the company's new corporate identity, from Puttalam
Cement Company Ltd to (PCCL) to Holcim (Lanka) Limited, Chairman
Holcim (Lanka), Manilal Fernando said.
funds to build this plant is not a problem since our new international
partner will fund it," he said. At present, the PCCL holds over
36% of the market share in Sri Lanka but the demand is more. "At
present, we are not in a position to manufacture more. But when
the proposed Jaffna plant comes into operation, we are hoping
to export cement to India as well," he said.
Mr. Fernando, who is Sri Lanka's only official to be in the legal
panel of the Asia Football Confederation, said that Holcim international
has invested US$ 3.5 million to upgrade their present plant in
Puttalam. "Now we have changed our firing system from Ferns to
coal firing which has brought down our production cost. During
the last five years we have also computerised our plant to keep
in line with world standards," he said.
Former President of the Football Federation of Sri Lanka, Mr.
Fernando outlining the tie up said that this was an act of confidence
shown to them by the their counterparts in Switzerland. "We are
only the second partner in Asia after Bangladesh to join the Holder
bank family. With the new identity we will have more financial
gain as now we are linked to a global family. But we will continue
to manufacture cement under the same brand name, 'Sanstha'," he
Tim Mackay, Managing Director, Holcim Lanka Limited said that
their parent company in Switzerland started manufacturing cement
100 years ago as a family concern. "But, today it has expanded
to 70 countries and has 135 manufacturing plants with a staff
of nearly 50,000 producing 180 million tonnes of cement annually.
"Our global partner, Holder Bank in Switzerland is the second
largest player in the globe. It is not a bank, but a host of companies
operating under one roof. They were the world leader last year
and I am positive that very soon they will climb to the top position
once again," he said.
"We are pledged to provide the most innovative solutions and services
for our customers to meet their individual needs. We bring a passion
for performance to everything we do from executive suites to the
plant floor raising the standard of our industry," he said.
As a part of their renowned customer oriented approach they have
established a new web site http://www.holcim.lk/ and a new
Daily News 31/01/2002
GARMENT INVESTMENT FROM LUXEMBOURG
521 MILLION RUPEE BOI APPROVED INVESTMENT
Limited a BOI approved company will establish a project to manufacture
non-quota garments for the export market. The ceremony of laying
of the foundation stone will be held on 1st February 2001 at Katukanda
Estate, Badalgama (Off Negombo). Mr Arjunna Mahendran, Chairman/Director
General of the BOI will be the Chief Guest at this occasion.
Sandro Veronesi, the President of Calzedonia Luxembourg opened
3 years ago its first factory, Omega Line Ltd, a state-of-the-art
factory at Sandalankawa after Mr Nagendra the Chairman of Omega
Line invited him to invest in Sri Lanka.
the success of Omega Line Ltd, with its Managing Director, Mr
Vincenzo Joppolo, an expert with over 30 years experience in the
garment industry, endorsing the confidence they had on the country,
Dott. Veronesi decided to open another factory to expand their
presence in Sri Lanka.
investment of this project is Rs. 521 Mn., and employment generated
is 1200. Sirio's product lines will include mainly foundation
garments, swimwear etc.(non-quota garments) Production capacity
of this project will be eight million garments per year.
company of Sirio Limited will sell their products through a network
over 1250 shops in Europe. They also have their own labels, namely
"Intimissimi" for underwear and "Calzedonia" for swimwear.
of directors of the Sirio Ltd consists of S. T. Nagendra (Chairman),
Sandro Veronesi, Vincenzo Joppolo (Managing Director), Dinal Peiris.
BOI Chairman, Mr Mahendran said he was delighted to see a renewed
interest in garments despite "post quota" uncertainties. "The
project brings with it access to established markets and partners
and that is what the sector needs most" he added.
Source: BOI media unit
goes digital asymmetrically
Asymmetric Digital Subscriber Line (widely
known as ADSL) service is to be introduced in by Sri Lanka Telecom
telecom carrier initially plans to implement Rs.13 million-worth
ADSL pilot project to provide the service to customers in Slave
Island area and expand it further in the future. ADSL, a broadband
service, will be the newest addition to SLT net's product menu,
which comprise access technologies such as Dial-up Internet (both
normal and ISDN) and Internet Leased lines.
the introduction of ADSL service customers will be able to enjoy
a high bandwidth to fulfill their communication needs with dedicated
access to Internet. A SLT spokesman said that ADSL service will
facilitate up to 2 Mbps for uplink whilst 512 kbps for downlink.
Through ADSL's local agent Infotech, SLT has chosen M/s Alcatel
as the equipment supplier.
to supply power to FTZ investors
of Investment (BOI) is planning to have its own power plants to
provide an uninterrupted supply of electricity to industries in
its investment zones, BOI chairman and director general Arjuna
to see if we can give our own captive power to our investors -
for the BOI to have own power plants," he said in an interview.
"There's no point in promoting investment if you can't give a
24-hour power supply," he added.
his immediate priority as BOI chief would be to "put our house
The BOI wants to see all its investment zones functioning well
and ensure a good service to existing customers.
been proved all over the world that your best source of future
investments are existing investors," he said.
has 11 industrial zones around the country. Eighty percent of
Sri Lankan industrial exports are done by BOI-approved projects.
shows the size of our activities," Mahendran said. "We're the
pre-eminent provider of infrastructure facilities for industry."
shortcomings had been noted in BOI investment zones such as effluents
seeping into wells and faulty streetlights.
has been some neglect of some of our older facilities in Katunayake,
Biyagama and Koggala," Mahendran said. "There's been more emphasis
on new zones such as Wathupitiwala, Mirigama and Malwatta."
would be on improving housing and transport for workers and infrastructure
such as power and water supply for employers, he said. The BOI
was aware of the problems that could be caused by workers having
poor living conditions.
This could give rise to social tensions between employees and
employers and lead to trade union agitation, he said.
investment promotion strategy would be to focus on attracting
investors from the region. "Our best bet would be India, the Middle
East and South East Asia in the short-term - that will be the
key focus for the next six months," Mahendran said. In the longer-term,
the broader promotion strategy would include some revamping of
the BOI to make it a more pro-active organisation, he said.
to have investment promotion officers in the BOI who will have
a portfolio of clients, say 10-15 entrepreneurs, like in banks,"
Mahendran said. "Instead of them (investors) coming to the BOI,
we'll go out to them."
means hiring more staff at the higher levels of the organisation.
incentive structure, now seen as complicated and difficult to
understand, will be simplified.
Sunday Times 20/01/2002
Borad of Investments - Sri Lanka